Test Bank - for Applied Statistics in Business and Economics 7th Edition by David Doane, Lori . Seward, All Chapters |Complete Guide A+
Solution Manual - for Applied Statistics in Business and Economics 7th Edition by David Doane, Lori . Seward, All Chapters 1-17 | Complete Guide A+
Solution Manual for Applied Statistics in Business and Economics 7th Edition by David Doane A+
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SOLUTION MANUAL For Applied Statistics in Business and
Economics 7th Edition by David Doane - All Chapters ( 1-15 ) Latest
2024 A+
Chapter 1 Overview of Statistics
1.1 a. Statistics can be used to 1) determine what a typical commission is and then 2) use
that value to identify commissions that appear to be unusually high.
b. She could use statistics to show the average energy use compared to previous
models. She could also use statistics to show how durable the monitor would be in
the field.
c. He could use statistics to calculate the average absenteeism at each plant and then
compare across the three plants. d. He could calculate average number of defects in
each shipment. He could determine variation in number of defects between the
three shipments.
Learning Objective: 01-1
1.2 a. He could calculate the job turnover for each gender for each restaurant. He could
then look at the difference between the various restaurants as well as the
difference between genders.
b. He could calculate the average number of emails received and sent for employees
in different job classifications and make comparisons.
c. The portfolio manager could calculate both the average return and the variation on
return for the six different investments and make comparisons.
d. By studying the busiest times of day for surgery, the administrator could work with
surgeons to spread their surgeries out to better use the facilities. He might also
look
at which surgeries take the longest and which are shorter to help with scheduling.
Learning Objective: 01-1
1.3 a. The average business school graduate should expect to use computers to
manipulate the data.
b. Answers will vary. Weak quantitative skills lead to poor decision making
because databased decision making is a hallmark of successful businesses. If one
cannot analyze data or understand summary analyses, one will be making decisions
without full information.
Learning Objective: 01-2
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1.4 a. Answers will vary. Why Not Study: It is difficult to become a statistical
“expert” after taking one introductory college course. A business person
should hire statistical experts and have faith that those who are using statistics
are doing it correctly. Why Study: In fact, most college graduates will use
statistics every day. Relying on a consultant to perform simple or even
complex statistical analyses means turning over part of the business
decision-making to someone who doesn’t know your business as well as you
do.
b. Answers will vary. Answers provided in part a will be similar for the subjects
of accounting. Foreign languages are essential in this global business
environment of today. While learning a foreign language can take
considerably more time as an adult, the investment is worth it. Businesses are
looking for college graduates that have quantitative skills and speak a foreign
language. Chinese and Spanish are popular choices.
c. To arrive at an absurd result, and then conclude the original assumption must
have been wrong, since it gave us this absurd result. This is also known as
proof by contradiction. It makes use of the law of excluded middle — a
statement which cannot be false, must then be true. If you state that you will
never use statistics in your business profession then you might conclude that
you shouldn’t study statistics. However, the original assumption of never
using statistics is wrong; therefore the conclusion of not needing to study
statistics is also wrong.
Learning Objective: 01-2
1.5 a. Answers will vary. b. An hour with an expert at the beginning of a project
could be the smartest move a manager can make. A consultant is helpful
when your team lacks certain critical skills, or when an unbiased or
informed view cannot be found inside your organization. Expert consultants
can handle domineering or indecisive team members, personality clashes,
fears about adverse findings, and local politics. As in any business decision,
the costs of paying for statistical assistance must be weighed against the
benefits. Costs are: statistician’s time, more time invested in the beginning
of a project which may mean results are not immediate. Benefits include:
better sampling strategies which can result in more useful data, a better
understanding of what information can be extracted from the data, greater
confidence in the results.
Learning Objective: 01-2
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1.6 a. The ethical issue is that credit card companies are using unfair marketing
practices to entice students to use credit cards. Students are a vulnerable
group that has not been educated about personal finance. Credit card
companies are also purchasing student lists from universities and various
student groups. This is also an unethical practice by the universities.
b. They used an in-person survey given to 1500 students. These students were
randomly solicited at popular places on campus. The sampling technique was
a convenience sample. The report did not attempt to make inferences about
the population of college students. The report simply provided statistics
collected from their sample. The naïve reader would most likely make the
inference that the numbers from the sample apply to the population as a
whole. This should be made clearer in the report.
c. The subjects surveyed include 1) how students pay for their education, 2) how
they use credit cards, 3) how many of them use credit cards, and 4) attitudes
toward credit card marketing on campus. It would be interesting to see what
the questions were and how they were worded.
d. Because the survey focused on students’ opinions and did not provide
information about credit card use by the general population it is difficult to
conclude that the marketing practices companies use on campuses are
different from those used to market cards to the general public. Furthermore,
it was not obvious that those students who had credit cards obtained those
cards as a direct result of the campus marketing efforts. What was impressive
was the amount of research the group did to support their claims of unethical
practices. The references to other reports and court cases were a better
support for their claims in question 1.
e. Answers vary. In general, because the study was based on a convenience
sample the results cannot be assumed to hold for the general population of
students. Also, it would be good to know how students’ use of credit cards
compares to the general public.
f. The list of schools included in the survey is focused in a few states such as
Massachusetts, California, and Colorado. There were very few schools from
the southeast and virtually no private colleges or universities. Because it was
a convenience sample it is not appropriate to extend the results from the
survey to the larger population of college students. However, many of the
references cited did suggest that the problem was widespread.
g. First, they suggest eliminating "freebies" or gifts that would entice students to
sign up for a credit card. Second, they suggest limiting posted marketing
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materials on campus. The third solution is to disallow acquisition of students’
lists. Fourth, they suggest that sponsorship should be discontinued. In other
words, credit card companies cannot pay for student groups to get them
new
customers. The fifth recommendation is to enhance student awareness about
credit card problems. Finally, they suggest that certain terms that take
advantage of students should be discouraged. For example, hidden fees,
changing contracts, and universal default should be eliminated. As a follow
up to this report note that the Credit Card Accountability Responsibility
and Disclosure Act of 2009 or Credit CARD Act of 2009 is a federal law
passed by the United States Congress and signed by President Barack
Obama on May 22, 2009. It is comprehensive credit card reform legislation
that aims "...to establish fair and transparent practices relating to the
extension of credit under an open end consumer credit plan, and for other
Purposes."[1]
Learning Objective: 01-3
1.7 Answers will vary. Examples include: linking expectations on conduct
to the company’s mission, explaining what is considered acceptable and
unacceptable behavior, providing courses of action for employees when
they have questions or believe an ethical guideline has been violated,
documentation so that employees will know the code, addressing nepotism,
addressing romantic relationships, addressing customer relationships and
vendor relationships.
Learning Objective: 01-3
1.8 Mary is falling for Pitfall 3: Conclusions from Rare Events. Just because
an event is unlikely doesn’t mean it will never happen. The probability
may be small but there is a chance of observing the same five winning
numbers in the same sequence on two different days.
Learning Objective: 01-4
1.9 Bob is falling for Pitfall 5: Assuming a Causal Link. Statistical
association
does not prove causation. Bob also appears to be falling for Pitfall 6:
Generalization to Individuals. Even if there were a link between cell
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